BIG blow to Insurance holders! IRDAI makes THIS mandatory from January 1; Deets inside

From January 1, 2023, all policyholders will be required to disclose their Know Your Customer (KYC) information while purchasing any kind of insurance policy, according to a regulation by the Insurance Regulatory and Development Authority of India (IRDAI). The purpose of this regulation is to ensure that insurance companies have correct and current information about the policyholders of all persons and businesses purchasing insurance in India.

Giving KYC information ensures that policyholders obtain the full benefits of their insurance coverage and aids in preventing fraud and money laundering. In order to avoid any delays or problems with their insurance coverage, policyholders must abide by this condition.

Currently, only claims above Rs 1 lakh are subject to the submission of KYC documentation. KYC documentation will be required in accordance with the new insurance regulation even when buying a new policy.